Can I resign (not retire) and withdraw all my CSRS retirement funds?
It depends. Prior to October 1, 1994, federal employees entering retirement could receive a payment equal to the value of the contributions they made to the retirement program over their careers as a single, tax-free lump sum payment, with annuity payments then reduced. But now, this “lump-sun option” exists only for federal employees who have conditions resulting in a life expectancy of less than two years and who are not taking disability retirement.
This response is written by James P. Garay Heelan, associate attorney of Shaw Bransford & Roth PC.
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If you RESIGN, you are entitled to receive all your retirement contributions back as a lump sum. Download and fill out SF-2802 from OPM’s website. This means the person will no longer qualify for a Retirement.
Your answer would be correct if the person RETIRED, but they specifically said RESIGN. Now, you can only get the lump sum when you RETIRE if you qualify for the Alternative Form of Annuity (AFA). Think this question should have gone to the Retirement column.